May 31, 2011

Spoiled children

In certain parts of the anti-EU blogosphere, the demonstrations in Greece, Spain and elsewhere are being heralded as the first signs of popular uprisings against the tyranny of remote politicians.

On the streets of Athens on Monday, reports the Wall Street Journal, "thousands of demonstrators gathered for a sixth consecutive day outside the Greek parliament in a mass protest modeled on Spain's "Los Indignados" movement, which has occupied Madrid's central square for weeks".

Antonis Papaioannou, a 20-year old student studying mechanical engineering in Athens, says that the austerity measures have hit education. In the past year, spending cuts have led to power outages at his college, walkouts by professors that haven't been paid, and even shortages of printing paper for student computers.

"I'm indignant because all I see from the government and troika is how they are trying to squeeze the Greek people dry without spending any money on education," he said. "The Greek government represents big capital, not the Greek people."

Bully for Antonis. His politicians have been lying to their people for decades. Greece's euro entry, which their European Commissioner has hailed as a major achievement, was based on lies about the Greek economy.

What does Antonis, with his sense of entitlement, think should happen now? Does he think the foreign bankers should pay for his education? Or maybe the Germans, the Dutch, or the Finns? I don't think so.

Sooner or later Greece will have to stop living off other countries' taxpayers. If they are going to start reducing their debts, they will have to change the payment terms sharply. Which will close the money markets to them, and trigger penalty clauses in many debt contracts.

Leave the euro and devalue? That would help Greece's ongoing trade balance. But what about the outstanding debts? If they remained denominated in euros, any prospect of repayment would become even more unlikely.

What Antonis should know is that his parents' generation sponged off foreigners for decades. It's them he should blame.